REVENUE MANAGEMENT FINAL EXAM, PRACTICE
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
500 QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS) |ALREADY
GRADED A+
What is the main reason that travelers today have more clout than ever before? -
ANSWER: They have information on virtually everything at their fingertips.
Revenue Management is NOT necessarily about... - ANSWER: Achieving 100 %
occupancy and a perfect science
The Hurdle Rate is...? - ANSWER: The Lowest Rate for a Given Day
A benefit of variable pricing within revenue management is the smoothing of
demand. T/F - ANSWER: True
Revenue management is a set of revenue maximization strategies and tactics that... -
ANSWER: can be used to improve the profitability of certain businesses.
In January, the 200-room SnowBound Inn ran a skiers special that resulted in them
selling 5,735 rooms during the month. What was the occupancy percentage for the
month? - ANSWER: Occupancy % = Room nights sold in a period / Room nights
available in that period
Answer: 5,735 / (200x31) = 5,,200 = 92.5%
When the American Airlines CEO developed yield management, what type of
information was crucial to its success? - ANSWER: forecasting
The goal of revenue management is to MAXIMIZE REVENUE per Available Time-
Based Inventory Unit (or RevPATI). RevPATI formula applied to all industries
translates into...? - ANSWER: Capacity Utilization x Average Revenue per Service
Transaction
Which of the following is NOT a criterion needed for an industry to unlock the full
potential of revenue management? - ANSWER: low fixed costs and high variable
costs
To interpret measures of a hotel's performance, managers often compare those
measures with: - ANSWER: industry or sector averages, the budget for the period,
and historical figures from comparable earlier periods at the hotel.
Which of the following statements about hotel revenue management is FALSE? -
ANSWER: Revenue management is new, as are all of the strategies that are
employed to maximize profit.
, Revenue Management includes a multidisciplinary management techniques applied
to several sub-sectors of the hospitality. Which of the following is NOT one discipline
within Revenue Management? - ANSWER: Logistics Management
Identify which of these is not a positive of using revenue management strategies and
tactics: - ANSWER: Motivate employees
If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per
room, what will room revenue equal? - ANSWER: $963,900
What is the main reason that travelers today have more clout than ever before? -
ANSWER: They have information on virtually everything at their fingertips.
Revenue management can be defined as - ANSWER: A set of strategies and
techniques used to sell the right product, to the right customer, at the right time and
at the right prices.
When might a revenue manager choose without questions to accept a less profitable
group booking over more profitable transient business? - ANSWER: The group is a
regular customer of the hotel or a key account group from your comp set.
What information is needed to calculate a net room rate? - ANSWER: room rate,
variable costs, and all costs and fees that apply to the booking
An individual traveling, dining, attending a game or performance, or staying alone is
usually referred to as a ______________. This type of guest may be also be defined
as an individual hospitality customer. Think of a single person purchasing an airline
seat, a meal, a ticket, or a hotel room; in RM we call this type of customer a: -
ANSWER: Transient
Displacement Analysis can determine the quantifiable benefits of different options.
However it needs to have the right circumstances. When is it appropriated? -
ANSWER: When a reliable forecast indicates that there's more demand than our
capacity, it will be a period of high demand
Displacement analysis is a RM decision making and comparative scenarios tool with
four step process: (1.) ________________________________; (2.) Establish the net
Food and Beverage revenue differential; (3.) Determine other revenue; (4.)
Summarize. Following the computation of the Transients displaced costs and the
group reservation revenues, what do we do in step 1.? - ANSWER: Establish net room
revenue differential
Why does Gabor Forgacs (your RM book's author) mentions in regards to
displacement analysis that "the numeric results of the (displacement) analysis should
not be the only criteria for the decision" p.57? - ANSWER: Because rather than a
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
500 QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS) |ALREADY
GRADED A+
What is the main reason that travelers today have more clout than ever before? -
ANSWER: They have information on virtually everything at their fingertips.
Revenue Management is NOT necessarily about... - ANSWER: Achieving 100 %
occupancy and a perfect science
The Hurdle Rate is...? - ANSWER: The Lowest Rate for a Given Day
A benefit of variable pricing within revenue management is the smoothing of
demand. T/F - ANSWER: True
Revenue management is a set of revenue maximization strategies and tactics that... -
ANSWER: can be used to improve the profitability of certain businesses.
In January, the 200-room SnowBound Inn ran a skiers special that resulted in them
selling 5,735 rooms during the month. What was the occupancy percentage for the
month? - ANSWER: Occupancy % = Room nights sold in a period / Room nights
available in that period
Answer: 5,735 / (200x31) = 5,,200 = 92.5%
When the American Airlines CEO developed yield management, what type of
information was crucial to its success? - ANSWER: forecasting
The goal of revenue management is to MAXIMIZE REVENUE per Available Time-
Based Inventory Unit (or RevPATI). RevPATI formula applied to all industries
translates into...? - ANSWER: Capacity Utilization x Average Revenue per Service
Transaction
Which of the following is NOT a criterion needed for an industry to unlock the full
potential of revenue management? - ANSWER: low fixed costs and high variable
costs
To interpret measures of a hotel's performance, managers often compare those
measures with: - ANSWER: industry or sector averages, the budget for the period,
and historical figures from comparable earlier periods at the hotel.
Which of the following statements about hotel revenue management is FALSE? -
ANSWER: Revenue management is new, as are all of the strategies that are
employed to maximize profit.
, Revenue Management includes a multidisciplinary management techniques applied
to several sub-sectors of the hospitality. Which of the following is NOT one discipline
within Revenue Management? - ANSWER: Logistics Management
Identify which of these is not a positive of using revenue management strategies and
tactics: - ANSWER: Motivate employees
If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per
room, what will room revenue equal? - ANSWER: $963,900
What is the main reason that travelers today have more clout than ever before? -
ANSWER: They have information on virtually everything at their fingertips.
Revenue management can be defined as - ANSWER: A set of strategies and
techniques used to sell the right product, to the right customer, at the right time and
at the right prices.
When might a revenue manager choose without questions to accept a less profitable
group booking over more profitable transient business? - ANSWER: The group is a
regular customer of the hotel or a key account group from your comp set.
What information is needed to calculate a net room rate? - ANSWER: room rate,
variable costs, and all costs and fees that apply to the booking
An individual traveling, dining, attending a game or performance, or staying alone is
usually referred to as a ______________. This type of guest may be also be defined
as an individual hospitality customer. Think of a single person purchasing an airline
seat, a meal, a ticket, or a hotel room; in RM we call this type of customer a: -
ANSWER: Transient
Displacement Analysis can determine the quantifiable benefits of different options.
However it needs to have the right circumstances. When is it appropriated? -
ANSWER: When a reliable forecast indicates that there's more demand than our
capacity, it will be a period of high demand
Displacement analysis is a RM decision making and comparative scenarios tool with
four step process: (1.) ________________________________; (2.) Establish the net
Food and Beverage revenue differential; (3.) Determine other revenue; (4.)
Summarize. Following the computation of the Transients displaced costs and the
group reservation revenues, what do we do in step 1.? - ANSWER: Establish net room
revenue differential
Why does Gabor Forgacs (your RM book's author) mentions in regards to
displacement analysis that "the numeric results of the (displacement) analysis should
not be the only criteria for the decision" p.57? - ANSWER: Because rather than a
